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30 May 2014
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Erskine Jones, 22, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Sentencing has been set for 8/27/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Lorenzo Coben, 25, of South Bend, Indiana was sentenced to 264 months imprisonment to run consecutively to an undischarged prison term imposed on 6/10/2013, and concurrently with the another undischarged prison term imposed on 6/10/2013, 3 years supervised release and to pay $13,131.00 in restitution after pleading guilty to the felony offense of using a firearm during and relation to a crime of violence. According to documents filed in this case, on or about April 11, 2013, Coben did knowingly use and carry a firearm during and in relation to a crime of violence, specifically, an armed bank robbery. During the bank robbery, Coben brandished the firearm. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Gigi Riley, 33, of South Bend, Indiana was sentenced to 51 months imprisonment, 3 years supervised release and to pay $2,572,350.52 in restitution after pleading guilty to the felony offense of conspiracy to defraud the government with respect to filing of false, fictitious, and fraudulent claims. According to documents filed in this case, Riley led and participated with others in a false tax return preparation and filing scheme in South Bend, Indiana. She prepared and submitted Forms 1040, U.S. Individual Income Tax Returns, with false or inflated Forms W-2 to obtain false tax refunds. Within the scheme approximately 1,189 tax returns were submitted for tax years 2008, 2009, and 2010 requesting a total of approximately $3,543,794.00 in tax refunds. Riley owned and maintained a bank account that received approximately $518,343.50 in tax refunds and she owned and maintained another account that received approximately $30,035.00 in tax refunds. She also oversaw and controlled bank accounts opened by others that received tax refunds from the false tax returns. This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- William Cooper, 52, of Mishawaka, Indiana was sentenced to 46 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of possessing a firearm as an unlawful drug user. According to documents filed in this case, on April 22, 2013, Mishawaka police conducted a traffic stop on a vehicle pulled into a residence. Cooper was the driver and police found two loaded guns in the console of the car. Indications of a methamphetamine lab were discovered in the basement of the house. Police officers entered the house initially for safety reasons and then proceeded to search on the basis of consent from Cooper. Police found three persons inside the residence who had outstanding warrants for arrest. Cooper admitted that he had approximately 15-16 long guns in the house in addition to the two handguns in the vehicle. He also admitted to being a regular methamphetamine user. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Theodis Lanfair, 42, of Calumet City, Illinois pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/12/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Dwayne Ashford, 52, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud and mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/26/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Nathan Huey-Dingle, 32, of South Bend, Indiana pled guilty to the felony offense of traveling in interstate commerce, transporting an individual across state lines, and trafficking an individual by force, fraud or coercion, with intent to engage in, promote, and facilitate the promotion, management, establishment and carrying on of a prostitution enterprise, and thereafter committing a crime of violence that resulted in the death of an individual. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 10/17/2014. This case is being prosecuted by Assistant United States Attorney Jill Koster.
- John Dates of Gary, Indiana pled guilty to the felony offense of knowingly and intentionally possessing with the intent to distribute a mixture and substance containing a detectable amount of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Gang Response Task Force. Sentencing has been set for 10/7/2014. This case is being prosecuted by Assistant United States Attorney Josh Kolar.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Cahleb Smith-Conrad, 22, of Delphi, Indiana was sentenced to probation for a term of one year after pleading guilty to the felony offense of possessing a firearm as a felon. According to documents filed in this case, on March 16, 2013, the Tippecanoe County Sheriff’s Department conducted a traffic stop on a vehicle after a 911 caller observed an intoxicated person drive his vehicle into the ditch and the intoxicated person was picked up by a vehicle driven by Smith-Conrad. The deputy sheriff conducted a traffic stop on the vehicle. The deputy sheriff observed a 12 gauge shotgun in the back seat of the vehicle. This case was the result of an investigation by Tippecanoe County Sheriff’s Department and the Carroll County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Dean Lanter.
- Tiana Williams, 30, of Gary, Indiana was sentenced to probation for a term of one year after pleading guilty to the felony offense of making a false statement in connection with the acquisition of a firearm. According to documents filed in this case, Williams admitted to agents that she purchased a Ruger 9mm pistol for a convicted felon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nick Padilla.
- Azzam Al-Hindi, 68, of Whiting, Indiana was sentenced to 7 months of home detention, payment of $2,000 in fines and payment of $32,667.64 in restitution after pleading guilty to the felony offense of mail fraud. According to documents filed in this case, between 2006 and 2010, Al-Hindi and others conspired to use false purchasers and often stole luxury vehicles to fraudulently obtain auto loans from different financial institutions. Those false purchasers intentionally submitted fraudulent consumer credit applications with no ability or intention to repay the loans. This case was the result of an investigation by the Department of Treasury - Secret Service. This case was prosecuted by Assistant United States Attorney Randy Stewart.
- Eloise Blackmon, 55, of Gary, Indiana was sentenced to 21 months, 1 year supervised release and to pay $200,000 in fines after pleading guilty to the felony offense of conspiracy to commit wire fraud and wire fraud. According to documents filed in this case, on May 9, 2006, Ms. Blackmon purchased a home in Gary, Indiana. The home was sold for significantly more than its actual value and the Department of Housing and Urban Development statement for the sale included a payment to Horizon Development for $37,750.46 for repairs to the property. The evidence collected in the investigation has revealed that no such repairs were ever actually done by Horizon - either before or after the sale. This home was one of ten involved. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Nick Padilla.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Deandre Banks, 24, of Fort Wayne, Indiana pled guilty to the felony offense of bank fraud. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
U.S. Attorney Files Charges in Multi-million Dollar Kickback Scheme Orchestrated at Logan County MineRead the Press Release
Charges Cover Widespread Multi-Million Dollar Fraud Uncovered In “Pay-to-Play” Kickback Scheme At Arch Coal’s Mountain Laurel Mining Complex In Logan County
CHARLESTON, W.Va. – United States Attorney Booth Goodwin today filed a variety of charges in United States District Court in Charleston arising out of a joint federal and state criminal investigation into cash kickbacks paid to Arch Coal, Inc. (“Arch”) employees working at the Mountain Laurel Mining Complex (“Mountain Laurel”) near Sharples, Logan County, West Virginia. The charges lay out a far reaching scheme orchestrated by Arch employees, including the former Mountain Laurel General Manager David E. Runyon, 45, of Delbarton, Mingo County, to receive cash kickbacks from certain vendors in exchange for receiving work. According to the charges, vendors were required to pay hundreds of thousands of dollars over several years to ensure that vendors received and continued to receive work at Mountain Laurel.
“This kind of pay-to-play scheme hurts honest coal-industry vendors who refuse to pay bribes as a way to get customers,” commented U.S. Attorney Booth Goodwin. “The corrupt way that these defendants did business should be a thing of the past. It’s bad for the economy and, ultimately, bad for consumers.”
According to the charges:
David E. Runyon, 45, of Delbarton, Mingo County, is charged with extorting certain vendors for cash kickbacks in exchange for ensuring that those complicit vendors continued to receive work from Mountain Laurel. As outlined below, Runyon and other Arch employees are charged with receiving kickbacks approaching $2 million over a five-year span from sometime in 2007 through sometime in 2012. Runyon faces up to 25 years’ imprisonment and a fine of up to $500,000 if convicted.
Gary K. Griffith, 62, of Oceana, Wyoming County, was charged with making a materially false statement to federal and state law enforcement when interviewed in the Mountain Laurel kickback scheme investigation. According to the charge, he was the maintenance manager at Mountain Laurel, and received cash kickbacks in the amount of at least $250,000 on behalf of him and mine general manager David E. Runyon from a vendor who refurbished shuttle cars. When he was asked by federal agents about receiving kickbacks either personally or on behalf of Runyon, he denied it. Griffith faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Stephen B. Herndon, 37, of Holden, Logan County, the former Mountain Laurel warehouse manager and now owner of Tri-State Mine Service, Inc., is charged with “structuring” a cash withdrawal from a local bank. The term “structuring” is used to describe criminal conduct when an individual engages in cash transactions with a financial institution in increments of $10,000 or less for the purpose of avoiding the financial institution’s currency transaction report (“CTR”) filing requirement with the Department of Treasury. Herndon faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Scott E. Ellis, 44, of Holden, Logan County, Stephen B. Herndon’s business partner in Tri-State, is also charged with structuring a cash withdrawal from a local bank account. According to the Information filed in Runyon’s case, Tri-State, through Ellis and Herndon, paid nearly $425,000 over a five-year period to receive rebuild work from Mountain Laurel. Ellis faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Alvis R. Porter, 61, of Holden, Logan County, owner and operator of Quality Oil, Inc., which was doing business as Southern Construction of Logan, provided construction services at the Mountain Laurel Mining Complex. Porter was charged with failing to collect, account for, and pay over trust fund taxes of an employee. As part of Runyon’s charge, Porter paid approximately $400,000 in kickbacks directly to Runyon. Porter faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
David N. Herndon, 63, of Chauncey, Logan County, was charged with engaging in an unlawful monetary transaction of criminally derived property of a value greater than $10,000. According to the charge, David Herndon owned MAC Mine Service, Inc., which provided contract labor to the Mountain Laurel Mining Complex. D. Herndon participated in a contract labor kickback scheme where in exchange for Runyon not seeking to terminate the contract, and instead extending the contract each year, David Herndon paid illegal cash kickbacks of approximately $340,000 for more than three years. D. Herndon faces up to 10 years’ imprisonment and a fine of up to $250,000 if convicted.
Ronald Barnette, 53, of Holden, Logan County, was charged with making a materially false statement to federal and state law enforcement investigating the Mountain Laurel kickback scheme. According to the charge, Barnette’s false statement pertained to paying kickbacks at Mountain Laurel for work that Barnette’s company received in rebuild miners and bolters at Mountain Laurel. Barnette ultimately admitted to making approximately $300,000 in cash kickbacks to Runyon over the course of the scheme. Barnette faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Gary L. Roeher, 52, of Holden, Logan County, was charged with filing a false tax return. According to the charge, Roeher deducted approximately $43,000 as a business expense for his company, CM Supply, when Roeher actually used the funds to install an in-ground swimming pool at his residence. Roeher faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Chadwick J. Lusk, 32, of Davin, Logan County, was charged with honest services mail fraud. According to the charge, Lusk, while the purchasing agent at Mountain Laurel, defrauded Arch Coal of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme. Gary L. Roeher, who owned CM Supply, Co., paid Lusk a portion of the profits for the crib blocks that Arch Coal purchased from CM Supply, Co. to use at Mountain Laurel to provide roof support in the underground mine portion of Mountain Laurel. Lusk faces up to 20 years’ imprisonment and a fine of up to $250,000 if convicted.
James H. Evans II, 39, of Verdunville, Logan County, owned and operated Baisden Recyling, which had a contract with Arch Coal to recycle scrap metal at the Mountain Laurel Complex. Evans was charged with conspiracy to commit honest services fraud, as he recycled scrap cable at Mountain Laurel. Evans paid Arch’s $30,000 commission on the scrap cable to Runyon through another Arch employee, Stephen B. Herndon, rather than to Arch. Evans faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
The charging documents, referred to as “informations,” are attached.
Today’s charge stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorneys Thomas C. Ryan and Meredith George Thomas are handling the prosecution.
NOTE: An information is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Click here to see a copy of the information documents.
Timonium Man Pleads Guilty to Stealing over $570,000 from an NIH Research GrantRead the Press Release
Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in BaltimoreBaltimore, Maryland - Baltimore, Maryland – Jason Dietz, age 34, of Timonium, Maryland, pleaded guilty today to theft of funds from a federal program, in connection with the theft of at least $571,205 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.
According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.
Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.
In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that $112,500 was missing from the MMG bank account on which Dietz was a signatory. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.
As part of his plea agreement, Dietz is required to pay restitution in the full amount of the loss. While the exact amount of the loss will be determined at sentencing, it is at least $571,205.
Dietz faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 8, 2014 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.Three More Defendants Sentenced in Logan Arson RingRead the Press Release
Joint Federal and State Investigation Results in 25 Years Of Prison Time For Million-Dollar Insurance Scam
CHARLESTON, W.Va. – Three more participants in a Logan County arson scheme were sentenced to prison, United States Attorney Booth Goodwin announced today. On Wednesday, Guy R. Miller, Jr., 40, of Logan, was sentenced to six years and three months in prison for his role in facilitating the February 1, 2012 burning of a former law office building located at 111 Stratton Street in downtown Logan. Miller recruited Michael D. Williams, 44, of Logan to spread approximately fifteen gallons of gasoline throughout the first floor of the building and ignite the fire. Williams spread so much gasoline that the fumes accumulated in the ceiling causing a dangerous explosion. The explosion was caught on the Logan County Courthouse video security system. Williams received a reduced sentence of 32 months in prison on Thursday as a result of his cooperation. Shawn C. Simon, 41, of Charleston, drove the getaway car for Miller and Williams and was sentenced Thursday to a term of 22 months in prison for destroying the digital video recorder from the neighboring restaurant, the 317 Steakhouse, operated by co-conspirator James Gregory Glick, 44, of Logan. The Main Street side security cameras for the restaurant captured Miller, Simon and Williams fleeing the scene after passing through a law office with doors that opened onto Main Street and Stratton Street. Simon admitted that he destroyed the video recorder shortly after the fire and threw it into the Kanawha River to conceal the evidence.
The scheme was initially hatched by Glick and another co-conspirator to collect insurance proceeds. In January of 2012, Glick bought the commercial building for $50,000. He then worked with an insurance agent and co-conspirator, William Jamey Thompson, 45, of Chapmanville, to obtain an inflated insurance policy from General Star Indemnity Company (“General Star”) providing $1 million in coverage. Thompson received $50,000 for his part in fraudulently obtaining insurance coverage.
While Glick was out of town during the early morning hours of February 1, 2012, Miller orchestrated the burning of the structure with Williams and Simon.
Without sufficient evidence of the arson, General Star paid Glick the $1,010,000 insurance policy proceeds in May of 2012, and Glick began sharing the money with his co-conspirators. In June of 2013, criminal investigators from the Internal Revenue Service, working with the West Virginia State Police, seized the remaining $450,000 in fraud proceeds from accounts controlled by Glick. Over the course of the next six weeks, the agents developed cooperating witnesses, who obtained audio and video recordings of efforts by Glick to obstruct the federal grand jury investigation by paying Miller $8,000 to provide false testimony if he was called as a witness.
Last week Glick received a sentence of more than 7 years for his role in the conspiracy and Thompson received a term of imprisonment of five years.
In addition to the $1,010,000 restitution order to repay General Star, the Court also ordered all defendants to reimburse the City of Logan $3,900 for emergency personnel response costs.
In March, Philip Wayne Workman, 36, of Logan was sentenced to prison for 27 months for his efforts to obstruct the arson investigation by conducting staged consensual recordings in an effort to frame innocent individuals.
The West Virginia State Police, West Virginia State Fire Marshal’s Office and the IRS Criminal Investigation Division conducted the investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecutionThirteen South Florida Men Are Sentenced in A Cocaine Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Dan Alexander, Chief, Boca Raton Police Department, Bryan Kummerlen, Chief, West Palm Beach Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce today that Osvaldo Domingo Ceballo, 44, of Hialeah, and Yumar Oliva, 43, of Miami, were sentenced by U.S. District Judge Daniel T.K. Hurley for conspiracy to possess with intent to distribute more than five kilograms of cocaine hydrochloride, in violation of Title 21, United States Code, Section 846, and possession with intent to distribute more than five kilograms of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841. Ceballo was sentenced to 216 months in prison, followed by five years of supervised release. Oliva was sentenced to 151 months in prison, followed by five years of supervised release. Both defendants were convicted by a jury on March 13, 2014, following a two week trial in West Palm Beach.
In October of 2010, DEA, the Boca Raton Police Department, and the Palm Beach County State Attorney’s Office began an investigation of co-defendant Taverne Pierre Louis’ drug distribution network operating in Haiti, the Bahamas, and in Miami-Dade, Broward, and Palm Beach Counties. During the course of this two year investigation, law enforcement conducted 14 wiretap investigations during which over 33,000 telephone calls and text messages were intercepted. In addition, law enforcement conducted surveillance operations, executed a number of search warrants, and seized 27 kilograms of cocaine hydrochloride and over 100 grams of cocaine base, commonly referred to as “crack” cocaine. Based upon the totality of the investigation, law enforcement learned that this large scale drug trafficking organization was responsible for the importation of hundreds of kilograms of cocaine hydrochloride from Haiti and the Bahamas for distribution in Miami-Dade and Broward Counties.
A total of fifteen defendants were charged in this indictment, two of which remain fugitives. Taverne Pierre Louis was sentenced to 188 months in prison, followed by five years of supervised release; Frantz Bernard was sentenced to 188 months in prison, followed by five years of supervised release; Joachim Pierre Louis was sentenced to 84 months in prison, followed by three years of supervised release; James Francois was sentenced to 84 months in prison, followed by five years of supervised release; Jose Ignacio Sigler was sentenced to 72 months in prison, followed by three years of supervised release; Beverly Sharon Miller was sentenced to 60 months in prison, followed by four years of supervised release; Tyrell Patrick Josey was sentenced to 30 months in prison, followed by five years of supervised release; Tremaine Shenard Jackson was sentenced to 120 months in prison, followed by five years of supervised release; Terrence Demetrius Nesbitt was sentenced to 188 months in prison, followed by five years of supervised release; Ronel M. Theodore was sentenced to 121 months in prison, followed by five years of supervised release; and Kirk Irwin Pierce was sentenced to 84 months in prison, followed by three years of supervised release.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, CBP, Boca Raton Police Department, and Palm Beach County State Attorney’s Office. Mr. Ferrer also thanked the USMS, BSO, and the West Palm Beach Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Resident Charged with Illegally Selling Controlled Substances on Silk Road, BitmessageRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the arrest and unsealing of a criminal complaint charging Matthew Jones, a/k/a “Caligirl,” “Dynamite2k,” “Dynamite`,” “Tyler Zeddai,” “Mateo Jones” (44, Dallas, Texas) with the illegal distribution of controlled substances. If convicted, he faces a maximum penalty of 20 years in federal prison. Jones was arrested last night in Fort Lauderdale. He made an initial appearance this morning in the Southern District of Florida.
According to the criminal complaint, Jones operated as the vendor “Caligirl” on the Silk Road drug marketplace and was among the top 5% of all Silk Road vendors. Between April 10, 2013, and September 9, 2013, Caligirl’s Silk Road account completed 685 finalized sales of controlled substances. Between July 11, 2013, and March 20, 2014, DEA agents purchased and seized more than 400 Oxycodone tablets and more than 900 Hydrocodone tablets from Jones. Jones shipped the controlled substances from Texas to Central Florida.
In addition to operating on Silk Road, Jones conducted his illicit drug trafficking business utilizing an encrypted and anonymized program called Bitmessage. Bitmessage is a decentralized, peer-to-peer, communications protocol that is used to send encrypted messages from one person to another or from one person to multiple persons. Bitmessage is specifically designed to hide non-content data, such as the sender and recipient of messages from intercept and passive eavesdropping.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration’s Orlando District Office with assistance from the United States Postal Inspection Service in Dallas, Texas. It will be prosecuted by Assistant United States Attorney David Haas.
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Stamford Man Pleads Guilty to Federal Gun Charge, Admits Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on May 28, 2014, in Bridgeport federal court, GERALD COLEY, 44, of Stamford, waived his right to indictment and pleaded guilty to one count of possession of a firearm by a previously convicted felon. COLEY also admitted to violating the terms and conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on February 3, 2014, Stamford Police were called to the home of COLEY’s girlfriend on a report that COLEY was holding his girlfriend at gunpoint, and that their three children were with them in the residence. The police arrived at the residence and confirmed that a family friend had escorted the children outside. COLEY then permitted his girlfriend to leave the residence. He subsequently surrendered to police and advised officers that he had hidden a gun behind a radiator in the living room. A search of that location revealed a loaded Glock .40 caliber handgun.
COLEY’s criminal history includes six felony convictions, including a 2002 federal conviction for possession with intent to distribute cocaine base (“crack cocaine”), for which he was sentenced to 151 months of imprisonment and three years of supervised release. COLEY was released from federal prison in September 2012 and began serving his supervised release.
COLEY is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall in New Haven on August 20, 2014, at which time he faces a maximum term of imprisonment of 10 years for illegally possessing a firearm, and up to two years of imprisonment for violating his supervised release.
Charges against COLEY related to the hostage situation are pending in state court.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Second State Auditor Charged with Theft from A Federally-funded EntityRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that another state auditor has been charged in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS).
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, is charged in a Bill of Information with theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and forfeiture. If convicted, the defendant faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds of the offense, and up to 3 years of supervised release following imprisonment.
During the relevant period, the defendant was an auditor with the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS), a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually. The defendant and the other auditors were responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
The Bill of Information alleges that, while employed as a DCFS auditor, the defendant engaged in a scheme with the Director of the Auditing Bureau, Delrice Augustus, to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. According to the Bill of Information, the defendant would sign the fraudulent reimbursement requests as the requesting employee, and Augustus would sign as the approving supervisor. The State would then pay the requested amount. Augustus pled guilty yesterday in connection with this scheme and others.
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
DCFS leadership has fully cooperated with the investigation and has provided valuable assistance throughout. Such assistance and cooperation is highly commendable and reflects a collective determination by law enforcement and DCFS leadership to root out the corruption identified in this matter.
Rutland Man Sentenced to Five Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Ernest Murray, 51, of Rutland to five years imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. In addition, Judge Reiss sentenced Murray to four years supervised release, to be served after he completed his five-year jail sentence. She also recommended to the Bureau of Prisons that Murray participate in the 500-hour substance abuse program for federal inmates.
Murray was charged with conspiring to distribute heroin and cocaine base in the Rutland area in 2012-13. The offense involved over 100 grams of heroin and over 28 grams of crack cocaine, either of which qualify for a five-year mandatory minimum jail sentence if proven by the Government. Murray pled guilty to this quantity level and was thus sentenced to the five year mandatory minimum. According to court records, Murray was initially charged in State court but continued to distribute drugs after he was released on state bail in July 2013. According to court records Murray used the knick name, “Rah.”Judge Reiss stated that the adverse impact of heroin in Rutland and other Vermont communities is a “tragedy” and Murray’s sentence sends a message to the community that drug distribution “will not be tolerated.” The Government stated in its sentencing memorandum that: “Heroin is wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.” Murray acknowledged that he was getting too old to spend time in jail and stated that he was “tired of getting in trouble,” that he was “sick of being in jail,” and that he wanted to get his “life straightened out.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by David Williams, Esq. This case was jointly investigated by the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Rockford Man Sentenced to 420 Months in Federal Prison for Possessing Crack Cocaine and A FirearmRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court to a total of 420 months in federal prison for committing firearms and drug trafficking offenses. DAYTON POKE, 35, was sentenced by U.S. District Judge Frederick J. Kapala to serve 360 months’ imprisonment for possessing with intent to distribute crack cocaine and for possessing a firearm as a felon. In addition, the court sentenced Poke to serve a consecutive term of 60 months’ imprisonment for possessing a firearm in furtherance of his drug trafficking crime. After serving his sentence in federal prison, Poke will be placed on 5 years of supervised release. Poke was also ordered to pay a special assessment of $300.
Poke was found guilty of possessing with intent to distribute crack cocaine, possessing a firearm as a felon and possessing a firearm in furtherance of a drug trafficking crime following a two-day jury trial on May 7, 2014. According to the evidence introduced at trial, on July 6, 2011, two Rockford Police Gang Unit detectives stopped a car driven by Poke for a traffic violation after it pulled into a residential driveway on 10tth Avenue in Rockford. During the traffic stop, the detectives searched the car and found a loaded handgun hidden underneath the driver’s seat, and crack cocaine inside the car’s center console. Prior to the stop by police, Poke had been convicted of a crime punishable by a term of imprisonment exceeding one year.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Chet Epperson, Chief of the Rockford Police Department.
The government is represented by Assistant U.S. Attorneys Mark T. Karner and Joseph C. Pedersen.
Real Estate Agent Sentenced to Five Years in Prison for Conspiracy to Defraud Investors and LendersRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced the sentencing yesterday of Andrew Brosnac, age 48, of Mansfield, Texas. Brosnac, a real estate agent and investment consultant, plead guilty to conspiracy to commit bank fraud and wire fraud in connection with the sale and leaseback of businesses in Pennsylvania, New York, West Virginia, North Carolina, South Carolina, Alabama, South Dakota, California, Oregon, and Wyoming.
According to United States Attorney Peter Smith, between 2006 and 2008 Brosnac and co-conspirator Samuel Pearson, age 47, Hanover, York County, Pennsylvania, admitted using a group of companies to buy Jiffy Lube stores, automotive service businesses, convenience store/gas stations and other commercial properties, then selling them to investors in Pennsylvania and California. The investment properties included a Jiffy Lube store in Sayre, Bradford County, Pennsylvania.
In pleading guilty, Brosnac admitted arranging funding from banks and credit unions for investors to purchase the properties and then used other companies controlled by him and Pearson to lease and operate the properties for investors. Brosnac also admitted that he and Pearson provided investors and lenders with false and fraudulent financial information concerning the investment properties which induced loans and investments totaling approximately $19 million. In the plea agreement, Brosnac agreed that he received approximately $2.4 million in commissions and consulting fees from the sales of the properties.Judge Yvette Kane sentenced Brosnac to five years in prison, followed by a period of three years’ supervised release, and a special assessment of $100, and ordered Brosnac to pay to victim investors and lenders restitution totaling $2,409,924.04 representing the commissions and consulting fees that he received as a result of the offense. Under the federal Sentencing Guidelines the advisory imprisonment range was 60 months, which is also the maximum statutory term of imprisonment.
Pearson, operator of Peanut Oil, was charged separately with conspiracy to commit bank and wire fraud in a Criminal Information filed in March 2011 and pled guilty in April 2011 pursuant to a plea agreement. He is awaiting sentencing before Senior U.S. District Court Judge William C. Caldwell.The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney George J. Rocktashel.
Online Merchant Convicted for Trafficking in Endangered FishRead the Press Release
United States Attorney Laura E. Duffy announced today that Michael Loo was sentenced to 3 years of probation and a fine of $1,000, following his plea of guilty to selling the endangered Asian arowana fish (Scleropages formosus). Loo admitted that after posting an ad on Craigslist, he illegally offered an endangered Asian arowana for sale to an undercover agent for $2,800. This is the second sentencing for the illegal sale of Asian arowanas in this district in the last two weeks. In a related case, Kiem Tran, the owner of the Fish Warehouse in Westminster, California, was sentenced on May 16, 2014, to a term of two years of probation and a $1,000 fine, following his plea of guilty to Transportation of Merchandise Imported Contrary to Law. In pleading guilty, Tran admitted that he engaged in transactions with Loo involving Asian arowana, knowing that the arowana would be transported between Westminster and San Diego. Tran acknowledged that he was aware that the arowanas involved in the transactions were an endangered species and that they had been brought into the United States illegally.
During the investigation of Loo and Tran, 13 Asian arowana fish were seized by agents of U.S. Fish and Wildlife. The endangered fish were forfeited to the government, and have been kept at SeaWorld and the San Diego Zoo during the pendency of the cases.
The Asian arowana fish is found in the rivers of Southeast Asia. Due to loss of habitat and over-fishing for aquarium collections, the Asian arowana was listed among the most restrictive species in the Convention on International Trade in Endangered Species (CITES) in 1975. The fish, also known as the “bonytongue” or “dragon fish,” can grow to three feet in length and are identified by large metallic scales, double barbels on the jaw, and large pectoral fins which make it look like a dragon in flight. The fish are symbols of prosperity and luck in the Asian culture and are believed to preserve its owner from death by dying itself. The fish is commonly green but the more rare red or golden arowanas are highly prized by collectors, selling for thousands of dollars.
DEFENDANT Case Number: 12CR2245-JM Michael Loo CHARGESUnlawful Sale of Fish, a felony, in violation of Title 16, United States Code, Sections 3372 and 3373
Maximum Penalty: 20 years in custody, a $250,000 fine and a $100 penalty assessment
DEFENDANT Case Number: 14CR396-JM Kiem Tran CHARGESTransportation of Merchandise Imported Contrary to Law, a felony, in violation of Title 18, United States Code, Section 545
INVESTIGATING AGENCY
Maximum Penalty: 5 years in custody, a $20,000 fine and a $100 penalty assessmentU.S. Fish and Wildlife Service
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Mercer Man Convicted on Child Pornography Offenses Sentenced to 40 Years in PrisonRead the Press Release
PITTSBURGH - A former resident of Mercer, Pa., has been sentenced in federal court to 40 years imprisonment, followed by supervised release for the remainder of his life, on his conviction of production of material depicting the sexual exploitation of a minor and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Earl Warner, 56.
According to Assistant United States Attorney Carolyn J. Bloch, who prosecuted the case, the evidence presented at trial established that on or about June 4, 2011, June 8, 2011, June 12, 2011, June 13, 2011, July 13, 2011, and July 23, 2011, in the Western District of Pennsylvania, Warner employed, used, persuaded, induced, enticed, and coerced one of three child victims to engage in sexually explicit conduct for the purpose of producing digital photographs and videos of such conduct. Also, on or about April 9, 2012, Warner possessed visual images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, on two memory cards seized during the execution of a search warrant at his home.
Prior to imposing sentence, Judge Schwab stated that Warner’s crimes were depraved and violent and that the production and storing of the photographs and videos of the sexual assault and abuse of minor children permanently recorded that abuse. The judge further described the defendant’s conduct as having created a horrific nightmare for the children to live.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the Mercer County District Attorney’s Office for the investigation leading to the successful prosecution of Warner.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Members of Drug Organization IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a series of federal grand jury indictments in Operation I Spy, an extensive investigation into a drug trafficking network operating in the Baton Rouge region.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The following nine individuals have been indicted:
• Ronrico Terrell, Sr., also known as “Ronrico Howard,” “Co,” “Shorty,” and “Rico,” age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture. If convicted, Terrell faces a mandatory minimum of 10 years and up to life imprisonment, up to 5 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $13,500,000 fine. He is in custody.
• Rahkeyah Howard, also known as “Boo,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture. If convicted, she faces a mandatory minimum of 10 years and up to life imprisonment, up to 5 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate her crimes, and a $6,250,000 fine. She is in custody.
• Howard S. Golphin, age 35, of Pine Grove, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture. If convicted, Golphin faces a mandatory minimum of 5 years and up to 84 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $10,250,000 fine. He is in custody.
• Danniesa Hughes Sanders, age 35, of Pine Grove, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture. If convicted, Sanders faces a mandatory minimum of 5 years and up to 80 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate her crimes, and a $10,000,000 fine. She is a fugitive.
• Johntha Rochon Williams, age 32, of Baton Rouge, Louisiana, is charged with distribution of cocaine and cocaine base and forfeiture. If convicted, Williams faces a mandatory minimum of 5 years and up to 60 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $6,000,000 fine. He is in custody.
• Bristen LaCour, also known as “Rudy,” age 24, of Baton Rouge, Louisiana, is charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. If convicted, LaCour faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Troy A. Bell, age 25, of Baton Rouge, Louisiana, is charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. If convicted, Bell faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Michael C. Finley, age 43, of Baton Rouge, Louisiana, is charged with distribution of cocaine base and cocaine and forfeiture. If convicted, Finley faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Eric O’Neal Selders, age 42, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, possession with the intent to distribute cocaine, and forfeiture. If convicted, Selders faces up to 40 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $2,000,000 fine. He is in custody.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue to focus our energies and resources on eradicating drug trafficking organizations and the violence that comes with them. To be clear, the dangerous drug dealer will find no safe haven within the federal criminal justice system. My great appreciation to the hardworking team of agents and prosecutors who contributed to this important operation.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Simply put, today’s indictments are the result of a successful collaborative effort by federal, state, and local law enforcement to pursue justice. The indictments should also serve as a reminder that DEA, along with its partners, remains deeply committed to aggressively and swiftly pursuing those who violate the federal drug laws.”
Chief Carl Dabadie of the Baton Rouge City Police Department stated: “This operation reflects the close coordination and cooperation among federal, state, and local law enforcement in the fight against drugs and violence in the Baton Rouge region. We look forward to continuing the united front against crime.”
District Attorney Hillar Moore of the Nineteenth Judicial District stated: “Today’s announcement is yet another example of how the region’s strong federal, state, and local law enforcement partnerships are combating violent drug organizations at every level.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters are being prosecuted by Assistant United States Attorney Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through guilty pleas
Maryland Man Sentenced to Seven Years in Prison for Voluntary Manslaughter in Traffic Fatality, Admits Striking Pedestrian in Crosswalk-Driver Was Under Influence of PCP-Read the Press Release
WASHINGTON – Woodrow R. Johnson, Jr., 53, of Capitol Heights, Md., was sentenced today to seven years in prison on a charge stemming from a traffic fatality in which he struck a pedestrian while he was on PCP, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson pled guilty in February 2014, in the Superior Court of the District of Columbia, to voluntary manslaughter. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Johnson will be placed on five years of supervised release. During that time, he must perform 50 hours of community service at a hospital or medical examiner’s office. The judge also ordered Johnson to pay $3,000 in restitution to the victim’s family and get treatment and counseling for substance abuse.
According to the government’s evidence, on Friday, Nov. 8, 2013, at about 6:10 p.m., Johnson drove his employer’s van northbound on Benning Road SE. Johnson drove at a high rate of speed and without using his headlights, although night had fallen. Johnson collided with two other cars, causing damage to those cars and injuries to their occupants, but he did not stop.
Instead, Johnson continued to speed toward the intersection of East Capitol Street. As he approached the intersection, traffic in front of Johnson waited at the red light. Johnson swerved into the opposite lanes of traffic, that is, into the southbound lanes of Benning Road, and ran the red light at East Capitol Street. As he did this, he struck and killed Shamika Smith, 24, who was a pedestrian in a crosswalk of Benning Road, crossing from east to west. Ms. Smith suffered severe blunt impact trauma and was pronounced dead on the scene.
Johnson did not slow or stop to avoid striking Ms. Smith, or after striking her. He continued to speed northbound on Benning Road, colliding with an additional three vehicles, causing damages and injuries to their occupants.
With officers from the Metropolitan Police Department following Johnson, he left the roadway and crashed through the fence of a church’s parking lot, colliding with and damaging the church’s parked van. Officers apprehended Johnson, who was still behind the steering wheel. He was disoriented and appeared to veteran officers to be under the influence of PCP. Johnson was taken to a hospital, where he admitted that he had smoked PCP before driving.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Sixth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
14-126Manhattan U.S. Attorney Announces Charges Against Five New York City Residents in Large-Scale Counterfeit Credit Card SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian A. Swain, the Acting Special Agent-in-Charge of the New York Office of the United States Secret Service, announced criminal charges against five New York City residents for their participation in a large-scale counterfeit credit card scheme involving over 150 stolen credit card numbers and over half a million dollars in losses to victims. The defendants – LUIS GUSTAVO TAVAREZ, ANTHONY REYNOSO, PLINIO PINEDA LOPEZ, VINCENT D. ESPINAL, and WARNER ALVAREZ ALMANZAR – obtained victims’ credit card numbers from illicit “carding” websites in which cybercriminals sell stolen credit card numbers and other information. TAVAREZ, REYNOSO, and LOPEZ were arrested this morning and will be presented later today in Manhattan federal court before U.S. Magistrate Judge Debra Freeman. ESPINAL and ALMANZAR remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants bought stolen credit card information from cybercriminals to go on a year-long shopping spree with other people’s money. We commend the U.S. Secret Service for their work in putting an end to the shopping spree.”
U.S. Secret Service Acting Special Agent-in-Charge Brian A. Swain said: "As today’s technology continues to evolve, cybercriminals use these advances and enhancements to perpetrate an expanding range of crimes. The Secret Service is committed to deploying cutting edge investigative practices and technology in order to bring these offenders to justice."
According to the allegations in the Criminal Complaint unsealed today:
From at least April 2013 through April 2014, the defendants and their co-conspirators obtained stolen credit card information from “carding” websites, which are Internet-based forums in which users sell and exchange stolen credit card numbers, and/or directly from computer hackers. The defendants encoded that stolen account information onto counterfeit credit cards, which they subsequently used to make hundreds of unauthorized purchases of store gift cards and merchandise at national retail chains in New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, and Massachusetts. The gift cards and retail items were then sold to others or returned to the stores for a cash refund.
As part of the scheme, the defendants and their co-conspirators obtained stolen account information for more than 150 credit card accounts and used that stolen information to make more than $500,000 in unauthorized purchases.
TAVAREZ, 34, REYNOSO, 25, LOPEZ, 24, and ESPINAL, 25, of Bronx, New York, and ALMANZAR, 20, of New York, New York, are each charged with one count of conspiracy to commit access device fraud, which carries a maximum penalty of seven-and-a-half years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendants would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Secret Service. He also thanked the Office of Homeland Security Investigations for their assistance with this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Alexander Wilson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Tavarez, Luis Gustavo, et al. complaint 14 mag 1160
Man Charged with Obstructing Marathon Bombing InvestigationRead the Press Release
BOSTON - A Quincy man has been charged with obstructing the investigation of the Boston Marathon bombings.
Khairullozhon Matanov, 23, of Quincy, is charged in an indictment that was unsealed today, with one count of destroying, altering, and falsifying records, documents, and tangible objects in a federal investigation, specifically information on his computer, and three counts of making materially false, fictitious, and fraudulent statements in a federal terrorism investigation.
It is alleged that, after the release of the photos of the suspected bombers in the late afternoon of Thursday, April 18, 2013, and again early in the morning of Friday, April 19, 2013, Matanov realized that the FBI would likely want to talk with him because of his ties to the bombers, especially in the week following the bombings. Matanov allegedly then took a series of steps to impede the FBI’s investigation into the extent of his friendship, contact, and communication with the suspected bombers, and the fact that he shared the suspected bombers’ philosophical justification for violence. In addition to deleting information from his computer, Matanov made a number of false statements to federal investigators. The indictment does not charge Matanov with participating in the Marathon bombings or knowing about them ahead of time.
The maximum sentence for the count of destruction of evidence is 20 years in prison and eight years for each false statement count. All four counts also carry a maximum of three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division; and Superintendent William Taylor of the Lowell Police Department, made the announcement today. This investigation was conducted by members of the Joint Terrorism Task Force, which is composed of officers from other federal, state and local law enforcement agencies. Assistance in the investigation was also provided by the Boston Police, Braintree Police, Waltham Police and Quincy Police Departments; the Massachusetts State Police; Customs Border Protection; and Naval Criminal Investigative Service.
The case is being prosecuted by Scott L. Garland and Aloke S. Chakravarty of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
(Download Indictment )
Luzerne County Court Employee Charged Federally with Stealing County FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal information was filed in U.S. District Court in Scranton charging Luzerne County Court employee, Stacey McGlone, age 37, of McAdoo, Pennsylvania, with stealing in excess of $5,000 from the Luzerne County Probation/Parole office, under the supervision of the County Court of Common Pleas, during the course of her employment with that office.
According to United States Attorney Peter Smith, McGlone was responsible for the collection of funds from individuals receiving services associated with the Probation/Parole Office, as well as debts owed by those individuals, including fines, costs and restitution debts incurred in connection with court proceedings. McGlone allegedly failed to make proper disposition of funds that came into her possession by reason of her employment. The Information charges that between January 2009 and March 2014, McGlone stole in excess of $5,000 in cash from payments she collected.
Federal jurisdiction to prosecute the case is based on the fact that Luzerne County and the Luzerne County Court of Common Pleas each received more than $10,000 in federal funds annually.
The government also filed a plea agreement with McGlone which must be approved by the U.S. District Court.
McGlone faces up to 10 years in prison and fines in the amount of $250,000. McGlone’s employment with Luzerne County and the Court of Common Pleas has been terminated.
The prosecution is the result of a joint investigation by the Federal Bureau of Investigation (FBI), and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Locust Grove Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
Defendant sold drugs outside Dumfries day care center that was owned and operated by his wife
ALEXANDRIA, Va. – Ralph Caldwell, 38, of Locust Grove, Virginia, pleaded guilty today to conspiring to distribute oxycodone.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
Caldwell was indicted on May 8, 2014, by a federal grand jury on charges of conspiracy to distribute oxycodone and distribution of oxycodone. Caldwell faces a maximum penalty of 20 years in prison and a $1 million fine when he is sentenced on September 5, 2014 at 9:00 a.m.
According to court records, from January 2011 to March 2014, Caldwell distributed oxycodone to customers throughout Prince William County, Virginia. As part of the conspiracy, Caldwell and others used the area near the Little Angels Day Care, a children’s day care center in Dumfries, Virginia, to sell oxycodone and arrange transactions. Caldwell told one of his co-conspirators—who was both the parent of a child being supervised at the day care and one of Caldwell’s suppliers—that payment for childcare services could be rendered in the form of a negotiated amount of oxycodone. Caldwell’s wife owned and operated the day care.
As part of the statement of facts entered with the plea, Caldwell admitted that he conspired to distribute oxycodone and that he sold oxycodone to a confidential informant on three separate occasions in February 2014 at locations within Dumfries and Triangle, Virginia.
This case was investigated by the FBI’s Washington Field Office, with assistance from the Prince William County Police Department. Special Assistant U.S. Attorney Kevin Lowell and Assistant U.S. Attorney Gene Rossi are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Local Doctor Charged with Health Care FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Sreekrishna M. Cheruvu, M.D., 58, of East Amherst, N.Y., has been arrested and charged by criminal complaint with health care fraud and submitting false statements relating to health care matters. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the complaint, the defendant treats patients for opioid addiction at his office in Williamsville, N.Y. Between January 2009 and December 2013, Cheruvu submitted false and fraudulent claims to private insurance companies seeking reimbursement for services allegedly provided. Claims submitted by the defendant included reimbursement for individual counseling sessions when patients were actually seen in a group therapy setting, and reimbursement for services Cheruvu allegedly provided while he was, in fact, out of the country.
For example, some of the defendant’s patients reported that between eight and fifteen patients attended the group therapy sessions that were billed as individual counseling sessions. The patients also stated that counselors, not Cheruvu, led the group therapy sessions and that when the defendant did attend a session, he stayed for about 10 minutes at the beginning or end of the session.
In November 2013, a search warrant was executed at the defendant’s Williamsville office. Records seized during the search revealed that on multiple occasions, Cheruvu billed insurance companies for therapy sessions that he did not attend.
According to the complaint, the defendant submitted false and fraudulent claims for payment to HealthNow, Independent Health and Excellus totaling approximately $628,000.
The complaint further alleges that Cheruvu submitted claims for payment totaling $147,000 on dates it was determined that the defendant was outside of the country.
“Perpetuating fraud on the health care industry drives up the cost for everyone, including taxpayers who fund government health care programs and all who contribute directly to their own health care costs,” said U.S. Attorney Hochul.
The defendant made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The Criminal Complaint was the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Law Enforcement and Community Members Partner to Combat Crimes Against ChildrenRead the Press Release
Jacksonville, FL - U.S. Attorney A. Lee Bentley, III and representatives of several federal, state and local law enforcement agencies are continuing the observance of National Missing Children's Day (May 25th) by today convening in Jacksonville, Florida to announce the national "Take 25" child safety campaign. This campaign highlights the cooperative efforts among federal, state, and local agencies to prevent, enforce, and prosecute crimes of exploitation against children. The "Take 25" campaign was created in 2007 by the National Center for Missing and Exploited Children (NCMEC). This campaign encourages parents to take 25 minutes to talk to their children about safety and ways to prevent abduction.
“Child predators are using more cunning and persuasive techniques to lure and exploit innocent children,” said U.S. Attorney A. Lee Bentley, III. “It is up to us, as a community, to educate and protect our children from these hidden dangers – online and elsewhere.”
The Department of Justice is committed to the safety and well-being of our children and has placed a high priority on protecting and combating the sexual exploitation of minors. In 2006, Project Safe Childhood was launched by the Department of Justice as a unified and comprehensive strategy to combat child exploitation by combining law enforcement efforts, community action, and public awareness. It marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who exploit children via the Internet, and to identify and rescue victims. The goal of Project Safe Childhood is to reduce the incident of sexual exploitation of children.
From October 1, 2010 through September 30, 2013, the U.S. Attorney's Office for the Middle District of Florida, with the close assistance of numerous federal, state, and local agencies, brought 292 Project Safe Childhood cases against 297 individuals. The charges in those cases vary by defendant, but they include conspiring to travel in interstate commerce to engage in illicit sexual conduct, production of child pornography, distribution and receipt of child pornography, and possession of child pornography. In addition, the MDFL has prosecuted numerous cases involving human trafficking, where individuals, including minors, were forced to commit commercial sex acts. These cases were brought by each of the five division offices of the Middle District of Florida.
Children of all ages are victimized by child pornography producers, from as young as infants and toddlers to adolescents. About half of the victims are younger than 12 years of age. NCMEC reports that 24 percent of identified victims were pubescent, and 76 percent were prepubescent.
Law enforcement agencies participating today’s event included the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement's Homeland Security Investigations; the Naval Criminal Investigative Service; the Florida Department of Law Enforcement; State Attorney’s Office (Fourth Judicial Circuit); Jacksonville Sheriff's Office; Clay County Sheriff’s Office, and the St. Johns County Sheriff’s Office.
Lancaster Resident Sentenced for Importing MethRead the Press Release
LAREDO, Texas – Elmer Resendiz, 22, of Lancaster, has been ordered to prison following his conviction of importing more than five kilograms of methamphetamine from Mexico, announced United States Attorney Kenneth Magidson. Resendiz pleaded guilty Sept. 6, 2013.
Today, Senior U.S. District Judge George Kazen handed Resendiz a total sentence of 135 months in federal prison followed by a five-year-term of supervised release. At the hearing, Judge Kazen commented on the involvement of relatives of Resendiz in the commission of the offense.
On June 9, 2013, Resendiz was detained by Customs and Border Protection (CBP) officers as he attempted to enter the United States at the Lincoln-Juarez Port of Entry No. 2, in Laredo. At that time, CBP officers found a noticeable amount of bondo in addition to signs of recent tampering with front passenger side wheel well and left front quarter panel. Resendiz and his vehicle were then sent for secondary inspection, at which time 9.94 kilograms of methamphetamine were discovered bundled inside a hidden compartment in the firewall of his vehicle.
Resendiz admitted to importing the drugs for individuals in the U.S. He stated he was driving the drug-laden vehicle to Lancaster and was to be paid $10,000 for his efforts.
Resendiz was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by CBP and Homeland Security Investigations. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Lakeland Man Sentenced to More Than 33 Years for Sex Trafficking and Child Pornography ChargesRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday yesterday sentenced Michael Gallon (49, Lakeland) to a term of 33 years and 9 months’ imprisonment for sex trafficking of a minor by force, fraud or coercion and a concurrent term of 20 years in federal prison for distributing child pornography. He was also ordered to serve a lifetime of supervision, upon his release. Gallon pleaded guilty to the charges on February 5, 2014.
According to the plea agreement, Gallon was a “pimp” who was operating in Florida and the southeastern United States. He recruited adult and minor females to join his “dance team.” Gallon then transported the females to bachelor parties and house parties that he arranged. The females danced and performed acts of prostitution at the parties. Gallon set up “VIP” rooms at each of the parties, where he would encourage the females to engage in commercial sex acts. Gallon charged the women to use the “VIP” rooms; he also kept most of the money the women earned. Law enforcement has identified at least twelve minor-aged victims of Gallon’s crime.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Jersey City Police Officer Pleads Guilty to Transportation of Stolen Goods and ExtortionRead the Press Release
TRENTON, N.J. – A Jersey City, N.J. police officer today admitted stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 39, of Jersey City, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with transportation of stolen goods and extortion under color of official right.
According to documents filed in the case and statements made in court:
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, N.J., to break into a trailer, steal cigarettes and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.
After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, N.Y., Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.
Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.
Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.
The cargo theft and conspiracy to commit extortion charges to which Rodriguez pleaded guilty carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000. Sentencing is scheduled for Sept. 26, 2014. Rodriguez has been suspended from the police department.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s plea. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Acting Deputy Chief of the General Crimes Unit Jonathan W. Romankow in Newark.
The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.
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Defense counsel: Brian J. Neary Esq., Hackensack, N.J.
Rodriguez, Mario Information
Inmates Indicted for Conspiracy to Commit Murder, Assault and RiotingRead the Press Release
Jackson, Miss – A Grand Jury has indicted Hector Miguel Diaz-Osuna, Ricardo Gonzalez-Porras and Jesus Beltran-Rodriguez for conspiracy to commit murder, U.S. Attorney Gregory K. Davis announced today. Gonzalez-Porras was also charged with assaulting a prison guard. Two other defendants, Juan Geraldo Arredondo and Ernesto Granados, were charged in the indictment with rioting.
The indictment alleges that the defendants’ crimes were committed during a May 20, 2012 riot at the Adams County Correctional Center. The case is set for trial in August 2014 before Senior U.S. District Judge David Bramlette, III.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Inmate Sentenced for Rioting in A Federal PrisonRead the Press Release
Jackson, Miss – Gerson Benavides, age 30, originally of Reynosa, Mexico, was sentenced on May 29, 2014, by Senior U.S. District Judge David Bramlette, III, to 75 months imprisonment, U.S. Attorney Gregory K. Davis announced today. Benavides was previously convicted of rioting at the Adams County Correctional facility. The riot occurred on May 20, 2012. Benavides was also ordered to pay restitution in the amount of $1,382,113.00.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Inmate Sentenced for Rioting in A Federal PrisonRead the Press Release
Jackson, Miss – Humberto Cuellar, age 41, originally of Nuevo Laredo, Mexico, was sentenced on May 29, 2014, by Senior U.S. District Judge David Bramlette, III, to 110 months imprisonment, U.S. Attorney Gregory K. Davis announced today. Cuellar was previously convicted of rioting at the Adams County Correctional facility. The riot occurred on May 20, 2012. Cuellar was also ordered to pay restitution in the amount of $1,382,113.00.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Indictment: Bank Fraud Scheme Started with Stolen MailRead the Press Release
WICHITA, KAN. – Four defendants appeared in federal Court in Wichita Friday on federal charges of conspiring to steal U.S. mail and commit bank fraud, U.S. Attorney Barry Grissom said.
The indictment alleges conspirators used sticky rodent traps to steal mail from U.S. mail boxes, including checks that had been placed in the mail. Conspirators cashed the stolen checks by adding another person’s name to the payee line, removing the name of the original payee and replacing it with another name, or manufacturing counterfeit checks using account information on the stolen checks.
A federal grand jury in Wichita indicted the following defendants:
Justin Anderson, 19, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, five counts of theft or receipt of stolen mail and two counts of bank fraud.
Jeremy Robinson, 35, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, three counts of theft or receipt of stolen mail, and one count of bank fraud.Madison P. Allen, 19, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of bank fraud.
Jennifer R. Harper, 34, Wichita, one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of bank fraud and one count of aggravated identity theft.
Upon conviction, the crimes carry the following penalties:
Bank fraud, conspiracy to commit bank fraud: A maximum penalty of 30 years in federal prison and a fine up to $1 million.
Mail theft, conspiracy to commit mail theft: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to any other sentence and a fine up to $250,000.
The U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Office, the Wichita Police Department and the Derby Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Husband and Wife Plead Guilty to Tax Charges and Agree to Pay the IRS over $800,000 in TaxesRead the Press Release
DENVER – Sandra J. Zuckerman, age 66, of Woody Creek, Colorado, pled guilty today before U.S. District Court Judge Robert E. Blackburn to willful failure to pay income taxes, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Blackburn is scheduled to sentence Sandra Zuckerman on September 16, 2014. Sandra and her husband, Mathew Zuckerman, were indicted by a federal grand jury in Denver on April 25, 2012. Mathew Zuckerman pled guilty on February 18, 2014 and is scheduled to be sentenced by Judge Blackburn on July 31, 2014.
According to information contained in court documents, beginning in 1986 and continuing through 2009, the Zuckermans either failed to file an income tax return, or filed a return using incorrect amounts. From 2003 through 2009 no income tax returns were filed with the IRS.
Starting in 1998, Mathew Zuckerman and an associate became 50/50 business partners and began to specialize in taking small companies public through reverse mergers of existing corporate shells. To operate their new venture, himself and his business partner formed Silicon Valley New Issues, Inc. (SVNI). In addition, he formed Intermountain Marketing & Finance, Inc., a corporation he solely owned which owned 50% of SVNI. As part of the scheme, Mathew Zuckerman evaded corporate income taxes on several million dollars of taxable income in 1999 from Silicon Valley New Issues, Inc. Over the course of the next 10 years, he continued to conceal his assets and business affairs from the IRS by utilizing additional corporations and trusts in order to avoid payment and collection of the Zuckerman's outstanding tax liabilities.
Specifically, to avoid IRS liens, in 1999, the Zuckermans caused the deed to their Woody Creek residence, purchased for approximately $1.2 million, to be recorded in the name of Hyperpanel University, Inc. ("Hyperpanel"), a Nevada corporation that listed the names of a cat and a dog as its officers and directors on its filings with the Secretary of State. Similarly, in 2004 Mathew Zuckerman formed a company called Treya, Inc. in Nevada that they used to purchase a $1.8 million home in 2004 in Toluca Lake, California. Based on the directions of Mathew, Sandra used her name from an earlier marriage, Sandra Eberli, to be used in connection with transactions conducted by Treya.
Furthermore, in December of 2004, Mathew Zuckerman created the Mathew Mark Zuckerman Trust ("MMZT") and placed himself in the position as "Trustor" and his CPA was appointed as trustee. In July of 2006, he caused his daughter to be appointed as the trustee and in 2008 caused 4,900,000 shares of Green Earth Technologies (a company for which he served as Chairman) to be issued to the trust using an incorrect employer identification number ("EIN") for MMZT. Then he instructed his daughter to sell shares of the stock and transfer funds to his personal bank accounts. By doing this he received profits in excess of $500,000 while evading payments of taxes owed to the IRS.
Mathew Zuckerman agrees to pay the IRS $693,706 in restitution and Sandra agrees to pay $112,511 in restitution to the IRS.
Mathew Zuckerman pled guilty to one count of tax evasion, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count. Sandra Zuckerman pled guilty to three counts of willful failure to pay income taxes, which carries a penalty of not more than 1 year in federal prison, and a fine of up to $100,000, per count.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Tim R. Neff.
Homestead Man Sentenced in $5 Million Identity Theft Tax Refund Check Cashing ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Marcelin Jean Louis, 40, of Homestead, was sentenced to 60 months in prison, followed by three years of supervised release, after pleading guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, for a tax refund scheme that resulted in the cashing of approximately $5 million in fraudulent tax refund checks. The defendant was also ordered to pay $4.5 million in restitution.
According to the plea documents, from in or around March 2012, through in or around October 2012, Louis obtained U.S. Department of Treasury tax refund checks from various individuals, which checks had been fraudulently obtained. The defendant brought the fraudulently obtained U.S. Department of Treasury tax refund checks to a co-conspirator to be cashed. In total, during this period, Louis cashed thousands of these fraudulently obtained income tax refund checks (the total amount of tax refund checks cashed by Argo Check Cashing during this period totaled approximately $5MM). In order to cash the checks, Louis brought copies of fake driver’s licenses with the name of the individual on the tax refund check.
According to the plea documents, Louis knew that the checks had been obtained by fraud and – to compensate him for the risk of cashing fraudulent checks – he received approximately 20% of the value of the checks. The defendant admitted in a recording with the owner of the store that he knew that the checks had been obtained by fraud.
According to statements made at sentencing, Louis agreed to turn over six different houses, one vehicle, and other assets totaling nearly $1 million.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hartford Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAIBWAR RAOUF, also known as “Camel,” of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by five years of supervised release, for attempting to purchase three kilograms of heroin from an undercover officer.
According to court documents and statements made in court, the Drug Enforcement Administration received information that RAOUF was a significant distributor of heroin in the Hartford area, and that he was looking for a new source of heroin supply. On June 12, 2012, RAOUF traveled to a diner in the Bronx, New York, to meet with an undercover law enforcement officer who was posing as a large-scale heroin trafficker. RAOUF arranged to purchase three kilograms of heroin from the undercover officer for $55,000 per kilogram. RAOUF agreed to give the officer approximately $120,000 as a down payment at the time of the initial purchase, and would pay the balance of $45,000 within three days of the purchase.
On July 17, 2012, RAOUF and the undercover officer met at a diner in Stamford to further discuss the heroin transaction.
RAOUF and the undercover officer subsequently agreed to conduct the heroin transaction on July 31, 2012. On that date, RAOUF’s girlfriend, Lillian Compres, withdrew $120,000 from a safety deposit box at a bank in East Hartford and provided the money to RAOUF. RAOUF then packed the cash in two VCR cases and placed the VCR cases in the trunk of Compres’s car. RAOUF then drove his car to the diner in Stamford, and Compres followed RAOUF in her car.
RAOUF and Compres met the undercover officer at the diner but, after RAOUF and Compres feared there was police presence in the area, they and the undercover officer traveled a short distance north on Interstate 95 to a restaurant parking lot. RAOUF and Compres were arrested at that time.
RAOUF has been detained since his arrest. On July 1, 2013, he pleaded guilty to one count of attempting to possess with intent to distribute one kilogram or more of heroin.
Compres has pleaded guilty to a related charge and awaits sentencing.
RAOUF was ordered to forfeit $120,000 in U.S. currency that was seized from the trunk of Compres’ car, and an additional $58,000 in U.S. currency that was seized from the safety box held in Compres’ name.
This matter was investigated by the Drug Enforcement Administration with assistance from the Office of the Special Narcotics Prosecutor for the City of New York. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
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(203) 821-3722 [email protected]Goodwin to Make Announcement in Major Investigation of Illegal Kickbacks at Logan County Mining OperationRead the Press Release
***MEDIA ADVISORY***
Media Advisory: TODAY - Goodwin to Make Announcement in Major Investigation of Illegal Kickbacks at Logan County Mining OperationCHARLESTON, W.Va. – U.S. Attorney Booth Goodwin, along with officials from the FBI, IRS, Postal Inspection Service, and West Virginia State Police, will announce developments in a major investigation of illegal kickbacks at a Logan County mining operation, TODAY, Friday, May 30, 2014, at 2:00 p.m., at the U.S. Attorney’s Office, Robert C. Byrd United States Courthouse, Fourth Floor, in Charleston. *** TV: Please arrive at courthouse by 1:30 p.m. to clear security and set up cameras. ***
WHO: United States Attorney Booth Goodwin
Federal and state law enforcement officialsWHAT: Announcement of developments in a major mining kickback investigation in Logan County.
WHERE: U.S. Attorney’s Office
Robert C. Byrd United States Courthouse
Fourth Floor
300 Virginia St., E.
Charleston, WV
WHEN: Friday, May 30, 2014 at 2:00 p.m.Golden U.S. Postal Carrier Sentenced for Stealing MailRead the Press Release
DENVER – A U.S. Postal Service city carrier working in Golden, Colorado was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn for theft of United States Mail by employee. The former Postal Service city carrier, John J. Bonney, age 37, of Westminster, Colorado was sentenced to serve 2 years probation. He resigned from his position, which he held for 15 years, during the course of the criminal investigation.
Bonney was indicted by a federal grand jury in Denver on November 5, 2013. He pled guilty before Judge Blackburn on January 16, 2014. He was sentenced on May 29, 2014.
According to the stipulated facts contained in the plea agreement, the U.S. Postal Service Office of Inspector General (USPS OIG) initiated an investigation after receiving a complaint from a Golden, Colorado resident that four envelopes that were deposited in a Postal Service collection box never reached their intended location. One of the envelopes contained a $100 gift card for Home Depot. The complainant determined the gift card was redeemed at a Home Depot in Westminster, CO. USPS OIG special agents went to the Westminster Home Depot, and after reviewing store surveillance video footage, identified a male wearing a Postal Service uniform as the individual who redeemed the gift card.
The individual in the photographs was later identified as Postal Service city carrier John Bonney. USPS OIG agents then determined Bonney was assigned to pick up mail from the collection box where the missing greeting card was placed on the day the envelopes were deposited. Investigators continued their investigation, including a test to see if Bonney stole mail he delivered. That investigation revealed that he did not. Additional investigation, including conducting video surveillance, revealed he placed certain pieces of mail he picked up in a personal blue duffle bag. He would then put that bag in his personal vehicle before returning his postal vehicle to the parking area.
When Bonney attempted to leave on the day of the video surveillance, USPS OIG special agents stopped him, identified themselves, and then placed him under arrest. Bonney gave consent for the USPS OIG agents to search his vehicle, where they found the blue duffle bag. After his arrest and subsequent subject interview, it was determined that Bonney started stealing mail in December of 2012.
“A long-time Postal Carrier can throw their career away, and become a federal felon, for stealing mail,” said U.S. Attorney John Walsh. “It is important that cards sent to celebrate holidays, provide a gift for a friend or relative, or compensate someone for work done, arrive at their intended destination. When they don’t, it is important to determine why, and hold those that have prevented it accountable.”
Executive Special Agent in Charge Pete Gately said, “The American public trusts the U.S. Postal Service to deliver their letters and parcels on time and intact. When an employee of the Postal Service violates that trust, as Mr. Bonney did, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. The USPS OIG and U.S. Attorney’s Office remain committed to holding anyone responsible for the theft of U.S. Mail accountable, as was demonstrated by the sentencing of Mr. Bonney. The public we serve can rest assured that the USPS OIG will continue to protect their mail and maintain America’s confidence in the integrity of the U.S. Postal Service.”
This case was investigated by the U.S. Postal Service Office of Inspector General, Office of Investigations.
This case was prosecuted by Special Assistant U.S. Attorney Kirsten Sinclair.
Four St. Cloud Felons Indicted for Possession of FirearmsRead the Press Release
MINNEAPOLIS — A federal grand jury has recently returned indictments charging four St. Cloud men with illegally possessing guns. On May 21, 2014, Darron Israel Shelton, Quontrell Martell Banner, and Kenneth Melvin Vinson were each charged with one count of being a Felon in Possession of a Firearm. That same day, through a separate indictment, Gregory Wimberly, Jr. was charged with two counts of being a Felon in Possession of a Firearm.
The first indictment alleges that on February 2, 2014, authorities found Shelton, Banner, and Vinson to be in possession of two guns, one C.G. Haenel .25 caliber pistol and a Bersa Thunder 9, 9 millimeter, semi-automatic pistol.
Shelton’s prior felony convictions include a drug offense, robbery, and assault. Banner has two prior robbery convictions and a drug conviction. Vinson’s prior felonies include assault, terroristic threats, and a drug conviction.
The second indictment alleges that on May 10, 2013, Wimberly was found to be in possession of a Kel-Tec 9 millimeter, semi-automatic pistol, and on March 7, 2014, he was allegedly found to be in possession of a Smith & Wesson 9 millimeter, semi-automatic pistol. Wimberly has a prior felony drug conviction.
Because the four defendants are convicted felons, they are prohibited under federal law from possessing firearms or ammunition at any time. Because of their extensive criminal history, Shelton and Banner each face a 15-year mandatory minimum sentence if convicted of the charges. Vinson and Wimberly each face a potential maximum sentence of 10 years in prison on each possession count. A federal district court judge will ultimately decide upon the appropriate sentences.
United States Attorney Andrew Luger stated that, “Our Office is working closely with law enforcement in the St. Cloud area to prosecute violent felons who are illegally possessing weapons. These cases are a significant step forward in that effort.”
These cases are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Cloud Police Department, the Waite Park Police Department, and the Central Minnesota Violent Offenders Task Force. They are being prosecuted by Assistant United States Attorneys Amber M. Brennan and Richard A. Newberry.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Former Usps Employee Sentenced to 42 Months in Federal Prison for Bribery, Fraud and Tax OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Tom Frost, Special Agent in Charge of the United States Postal Service Office of Inspector General, Major Fraud Investigations Division, announced that former U.S. Postal Service employee ROBERT GIULIETTI, 57, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 42 months of imprisonment, followed by three years of supervised release, for bribery, fraud and tax offenses.
According to court documents and statements made in court, GIULIETTI was a Facilities Project Manager for the U.S. Postal Service (USPS) at the USPS Northeast Facilities Office in Windsor, Conn. GIULIETTI’s duties included recommending and selecting facilities improvement contractors, reviewing and approving bids received from those contractors for USPS work, certifying the completion of work by contractors and approving payment authorizations. GIULIETTI has admitted that he accepted approximately $89,000 from two contractors to direct inflated USPS facilities construction contracts to them.
Also, in approximately September 2009, GIULIETTI formed MGC LLC to do business with the USPS on projects on which he worked. MGC was owned in name by GIULIETTI’s wife, and its business address was his home address in Cheshire. Operating MGC from his USPS office in Windsor, GIULIETTI used his position to direct USPS contracts to MGC, to approve MGC’s work and to authorize payment to MGC for work. After GIULIETTI directed USPS contracts to MGC, he engaged other contractors to perform the actual work involved with each project. GIULIETTI generated almost a million dollars in profit by having MGC charge USPS more than MGC had to pay the contractors who performed the actual work.
Between November 2009 and November 2011, GIULIETTI directed more than 150 USPS facility projects to MGC, causing a loss to the USPS of approximately $982,064.68.
GIULIETTI also filed false federal income tax returns for the 2008 through 2011 tax years by fraudulently deducting payments from MGC to members of his family, and by not reporting the corrupt payments that he received.
“The prosecution of corrupt public employees is a top priority of this Office,” stated U.S. Attorney Daly. “This defendant not only accepted bribes and defrauded the U.S. Postal Service of nearly a million dollars, but he cheated on his taxes, as well. It is intolerable criminal conduct. I commend the USPS Office of Inspector General, the Connecticut FBI and IRS-Criminal Investigation for their excellent work in this investigation, which included the seizure of significant assets.”
“The priority mission of the USPS-OIG Major Fraud Investigations Division is to protect the integrity and improve the economy of the U.S. Postal Service through vigorous investigation of schemes designed to defraud it,” stated Special Agent in Charge Frost. “Mr. Giulietti put the desire for his own personal enrichment ahead of his duty when he betrayed his position of trust and defrauded the U.S. Postal Service. His sentencing today is the inevitable outcome of his actions.”
GIULIETTI was arrested on December 13, 2012. On February 7, 2014, he pleaded guilty to one count of bribery of a public official, one count of wire fraud and one count of filing a false tax return.
As part of his sentence, GIULIETTI is required to pay restitution in the amount of $882,064.68, and back taxes penalties and interest in the amount of $291,026.82. Judge Underhill ordered the forfeiture of a residence GIULIETTI owns on South Pond Circle in Cheshire, a 2012 Chevrolet Equinox, and approximately $740,000 that was seized from bank accounts.
GIULIETTI was ordered to report to prison on July 23, 2014.
This ongoing investigation is being conducted by the U.S. Postal Service, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Eric Glover.
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(203) 821-3722 [email protected]Former Postmaster Sentenced for Stealing Postal Service FundsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Donna Spencer, 51, of Falconer, N.Y., who was convicted of misappropriation of postal funds by a postal service employee, was sentenced to two-years probation by Chief Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $14,023.50 to the U.S. Postal Service.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Spencer was employed by the United States Postal Service since 1986. Between February 13, 1999, and July 19, 2013, the defendant was employed as the Postmaster at the Frewsburg, N.Y. Post Office. During that time, Spencer accepted cash payments from USPS customers for the purchase of postage stamps. Instead of depositing the cash payments into the USPS register, the defendant kept the cash for her own purposes. An audit of the Frewsburg facility determined that the total loss amount was $14,023.50.The plea is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector in Charge Shelly A. Binkowski of the Boston Division.
Former Newton Doctor Sentenced to 5 Years in Prison for Prescribing Controlled Substances Outside the Course of Usual Medical Practice and Related Health Care FraudRead the Press Release
DES MOINES, IA – On Thursday, May 29, 2014, Dr. Lafayette James Twyner, age 65, of Newton, Iowa, was sentenced to 5 years in prison by U.S. District Court Judge Stephanie M. Rose on charges relating to his alleged unlawful dissemination of controlled substances to patients, announced United States Attorney Nicholas A. Klinefeldt.
“Neither state nor federal authorities in Southern Iowa will turn a blind eye to health care professionals who criminally abuse their authority to prescribe controlled substances and bill insurance companies,” explained U.S. Attorney Nicholas Klinefeldt. “The safety of the community is our top priority.”
Dr. Twyner had previously pled guilty on February 21, 2014 to federal charges of illegally dispensing hydrocodone resulting in death, and health care fraud. Over the course of several years, Dr. Twyner prescribed various controlled substances, mostly pain medications, to patients who had no legitimate need for them, and to some who were admittedly addicted to them. He then billed the patients - and their insurance companies - for the office visits when they sought drugs from him.
Judge Rose accepted the terms of a plea agreement between the U.S. Attorney’s Office and Dr. Twyner, which also called for Dr. Twyner to serve three years of home confinement after he is released from the custody of the U.S. Bureau of Prisons. The Court based its decision to accept the agreement, in part, on Dr. Twyner’s extraordinary acceptance of responsibility for his actions, which he demonstrated by surrendering his registration to prescribe controlled substances and his medical license while the investigation was ongoing, but before he was charged.
A search warrant was executed on Tuesday, April 5, 2011, at the location of Urgent Care Clinic in Newton, where Dr. Twyner formerly practiced medicine. Records of the Iowa Board of Pharmacy show Dr. Twyner voluntarily surrendered his registration to prescribe controlled substances on April 12, 2011, which was accepted by the Iowa Board of Pharmacy on April 27, 2011. Urgent Care closed one month later, on May 27, 2011. After being charged with unprofessional conduct in January 2012 by the Iowa Board of Medicine related to his dispensing of controlled substances, Dr. Twyner entered in a settlement agreement on July 12, 2012, with the Iowa Board of Medicine in which he agreed to voluntarily surrender his Iowa medical license, and pay a $10,000 fine.
The United States Drug Enforcement Administration (DEA) regulates the distribution of highly-addictive, or controlled, substances. Its regulatory system classifies substances based on their potential for abuse and dependence, their accepted medical use, and their safety for use under medical supervision. Schedule I contains the most dangerous, addictive, and restricted drugs, with Schedule V containing the least, though still dangerous, of the substances in the hierarchical scheme.
Doctors, pharmacists, and other health care professionals with DEA registrations can lawfully dispense controlled substances if they are doing so in the usual course of their professional practices and for a legitimate medical purpose, but act unlawfully when they do things such as knowingly issuing a prescription to someone who is abusing or diverting a drug, like Dr. Twyner.
The case was investigated by the United States Department of Health and Human Services, Office of Inspector General, the United States Drug Enforcement Administration, the Federal Bureau of Investigation, the Jasper County Sheriff's Department, the Newton Police Department, and the Mid-Iowa Narcotics Enforcement Task Force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
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Former Grandville Man Pleads Guilty to Filing A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Richter, formerly of Grandville, Michigan, pleaded guilty to filing a false federal income tax return for 2007, U.S. Attorney Patrick J. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service Criminal Investigation Division.
According to court records, during 2007 through 2011 tax years, Richter failed to accurately report all of his income. During 2007, Richter underreported his income by more than $253,000. In total for the years 2007 through 2011, Richter underreported his income by $995,436.07. In addition, Richter failed to pay approximately $372,000 in tax due and owing to the Internal Revenue Service.
Richter entered the guilty plea in U.S. District Court in Grand Rapids before Judge Robert Holmes Bell. Judge Bell scheduled a sentencing hearing for September 10, 2014. Richter faces up to three years in prison, restitution of the tax due and owing, and a fine of not more than $250,000.
The case was investigated by special agents of the Internal Revenue Service Criminal Investigation, and prosecuted by Assistant U.S. Attorney B. Rene Shekmer.
END
Former District of Columbia Government Employee Pleads Guilty to Stealing over $114,000 from Citizen’s Bank AccountDefendant Gained Access to Bank Information While Working at the D.C. Office of Tax and RevenueRead the Press Release
WASHINGTON - Catyondia Ballard, 48, a former employee of the District of Columbia Office of Tax and Revenue, pled guilty today to a federal charge stemming from her theft of over $114,000 from the bank account of a retired military member, announced U.S. Attorney Ronald C. Machen Jr. and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Ballard, of Bowie, Md., pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. The Honorable Judge Rudolph Contreras scheduled sentencing for Aug. 22, 2014. Under federal sentencing guidelines, Ballard faces a likely range of 15 to 21 months of incarceration, as well as a fine of up to $40,000. Under the plea agreement, Ballard also must pay restitution to the victim. The government maintains that the victim’s losses total, at least, $114,166. Finally, Ballard is subject to an additional forfeiture money judgment.
According to the government’s evidence, Ballard became familiar with the victim through her job at the District of Columbia Office of Tax and Revenue. While there, Ballard gained access to the victim’s personal biographical information, as well as the victim’s bank account information. Using the victim’s information, Ballard began wiring funds from the victim’s bank account directly to Ballard’s account at a loan servicing company in order to pay off Ballard’s mortgage. From March 2007 through April 2010, Ballard directed a total of $114,166 of the victim’s funds to Ballard’s account without the victim’s permission.
In announcing the plea, U.S. Attorney Machen and Interim Inspector General Bruce commended the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-128Former Anderson, California, Police Officer <br /> Pleads Guilty to Civil Rights Offense<br /> for Sexually Assaulting WomanRead the Press Release
Former Anderson, California, Police Officer Bryan Robert Benson pleaded guilty today in federal court to a civil rights offense for sexually assaulting a woman while transporting her to jail, announced the Justice Department and the U.S. Attorney’s Office for the Eastern District of California.
Benson, 29, pleaded guilty to one felony count of deprivation of rights under color of law. According to the factual basis in a plea agreement filed with the court today, Benson transported the victim, to the Shasta County Jail after she was arrested for driving under the influence on May 29, 2010. Before arriving at the jail, Benson pulled into a parking lot. There, he falsely reported by police radio to dispatch that he had arrived at the jail when, in fact, he had not. Benson got out of the car, opened the passenger side door of the car, removed the victim from the passenger seat, and led her to the back of the police car. Benson pulled down the victim’s shorts and underwear and engaged in intercourse with her against the police car without her consent. The offense resulted in bodily injury to the victim, including physical pain and bruising.
Sentencing is scheduled for Aug. 15, 2014. Benson and the government agreed in the plea agreement that the Court should sentence Benson to five years in prison. Benson also faces a fine of up to $250,000.
“In sexually assaulting a woman in his custody, the defendant betrayed his oath to uphold the law, violated the trust placed in him by society, and, most regrettably, caused untold harm to the victim,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold such offenders accountable.”
“Members of the public have a right and an expectation that they can look to the police for help and safety,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California.. “When a police officer abuses that trust for his own criminal purposes, he violates his duty to protect the public, undermines the effectiveness of his fellow officers, and subverts the rule of law.”This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Matthew G. Morris for the Eastern District of California.
Final Member of Massive Prescription Drug Conspiracy Sentenced to 151 Months in PrisonRead the Press Release
Defendant is last of 38 defendants to be sentenced
COVINGTON – The final member of a large prescription drug ring that illegally distributed approximately 80,000 prescription pills in Northern Kentucky and Southern Ohio, was sentenced to 151 months in federal prison.
U.S. District Judge Amul Thapar sentenced 34 year-old Nick Sandlin, of Cincinnati, on Thursday and placed him on lifetime supervised release. Sandlin must serve at least 85 percent of his prison sentence. Sandlin is the last of 38 defendants involved in this conspiracy to be sentenced.
According to court records, from December of 2011 through February of 2013, Sandlin admitted to conspiring with others to distribute oxycodone. Specifically, Sandlin organized trips to pain clinics in Florida, where several of his co-defendants obtained prescriptions for large quantities of oxycodone. The group then typically traveled to various locations in Florida, Pennsylvania, Missouri, and Kansas to fill the prescriptions. Sandlin and others paid medical and travel expenses in exchange for the bulk of the oxycodone pills prescribed to each patient. Sandlin made approximately 13 trips to Florida to obtain oxycodone and admitted to distributing over 5,000 tablets. Sandlin acknowledged that he took part in a smaller conspiracy to distribute marijuana during this time as well.
This was the final sentencing in a prosecution that resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, termed Operation Family Vacation.
All 38 members of the conspiracy have been convicted and sentenced. The ringleaders of the group, Damon and John Helton, received sentences of 360 and 270 months in prison, respectively, for engaging in a continuing criminal enterprise. Sentences for other members of the conspiracy ranged from 168 months to 30 months. Several members of the conspiracy were also convicted of money laundering. The average sentence was over 96 months. This investigation resulted in the forfeiture of five motor vehicles, 25 firearms, 12 pieces of real estate, and approximately $110,000.00 in currency.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, and Kathy A. Enstrom, Special Agent in Charge, Cincinnati Field Office, Internal Revenue Service - Criminal Investigation, jointly announced the sentence.
The investigation was conducted by the Drug Enforcement Administration, the Internal Revenue Service, the Northern Kentucky Drug Strike Force, the Covington Police Department, and the Norwood Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Tony Bracke and Wade Napier.
Final Member of Massive Prescription Drug Conspiracy Sentenced to 151 Months in PrisonRead the Press Release
Defendant is last of 38 defendants to be sentenced
COVINGTON, KY -The final member of a large prescription drug ring that illegally distributed approximately 80,000 prescription pills in Northern Kentucky and Southern Ohio, was sentenced to 151 months in federal prison.
U.S. District Judge Amul Thapar sentenced 34 year-old Nick Sandlin, of Cincinnati, on Thursday and placed him on lifetime supervised release. Sandlin must serve at least 85 percent of his prison sentence. Sandlin is the last of 38 defendants involved in this conspiracy to be sentenced.
According to court records, from December of 2011 through February of 2013, Sandlin admitted to conspiring with others to distribute oxycodone. Specifically, Sandlin organized trips to pain clinics in Florida, where several of his co-defendants obtained prescriptions for large quantities of oxycodone. The group then typically traveled to various locations in Florida, Pennsylvania, Missouri, and Kansas to fill the prescriptions. Sandlin and others paid medical and travel expenses in exchange for the bulk of the oxycodone pills prescribed to each patient. Sandlin made approximately 13 trips to Florida to obtain oxycodone and admitted to distributing over 5,000 tablets. Sandlin acknowledged that he took part in a smaller conspiracy to distribute marijuana during this time as well.
This was the final sentencing in a prosecution that resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, termed Operation Family Vacation.
All 38 members of the conspiracy have been convicted and sentenced. The ringleaders of the group, Damon and John Helton, received sentences of 360 and 270 months in prison, respectively, for engaging in a continuing criminal enterprise. Sentences for other members of the conspiracy ranged from 168 months to 30 months. Several members of the conspiracy were also convicted of money laundering. The average sentence was over 96 months. This investigation resulted in the forfeiture of five motor vehicles, 25 firearms, 12 pieces of real estate, and approximately $110,000.00 in currency.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, and Kathy A. Enstrom, Special Agent in Charge, Cincinnati Field Office, Internal Revenue Service - Criminal Investigation, jointly announced the sentence.
The investigation was conducted by the Drug Enforcement Administration, the Internal Revenue Service, the Northern Kentucky Drug Strike Force, the Covington Police Department, and the Norwood Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Tony Bracke and Wade Napier.
Federal Inmate Sentenced to Life in Prison for the Murder of a U.S. Correctional OfficerRead the Press Release
WASHINGTON – Federal inmate James Ninete Leon Guerrero, 48, of Guam, was sentenced today to serve life in prison for the murder of United States Correctional Officer Jose Rivera, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin Wagner of the Eastern District of California. Guerrero was sentenced by U.S. District Judge Phillip Pro of the District of Nevada.
According to court documents, Guerrero aided and abetted co-defendant Jose Cabrera Sablan in the stabbing death of Officer Rivera. On June 20, 2008, as Officer Rivera was on duty and conducting his daily count in the United States Penitentiary in Atwater, California, Sablan attacked him with an eight-inch homemade shank. Officer Rivera tried to flee, but was knocked backwards by Sablan and tackled by Guerrero. Guerrero held Rivera down as Sablan stabbed him with the shank in excess of 20 times. Officer Rivera was 22 years old at the time of his death and was a United States Navy veteran.
Sablan and Guerrero were indicted for murder on Aug. 14, 2008. Sablan’s case is set for trial on April 6, 2015, and the government will be seeking the death penalty if he is convicted.
The charges against Sablan are merely accusations and he is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation was conducted by the Bureau of Prisons and the FBI. The case is being prosecuted by Trial Attorney Bonnie Hannan of the Capital Case Section of the Criminal Division and Assistant U.S. Attorney Duce Rice of the Eastern District of California.
Downtown Pittsburgh Jeweler Admits Failing to File Required IRS FormRead the Press Release
PITTSBURGH - A Pittsburgh jeweler pleaded guilty in federal court to a charge of failing to file a report of currency received by a non-financial business, United States Attorney David J. Hickton announced today.
Efraim Tuti, 42, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on July 7, 2011, Tuti, who was engaged in the jewelry business known as 2T Jewelers on Fifth Avenue in Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $11,000 in currency as partial payment for a diamond ring purchased by an undercover IRS agent for a total of $22,000. Tuti acknowledged during the plea hearing that he also sold a $13,000 pair of earrings to the undercover agent, after which he failed to file the IRS Form 8300, as required. On Feb. 22, 2013, $125,070 was seized by the IRS during the execution of a search warrant at 2T Jewelers. Tuti agreed to forfeit the money to the United States as part of his entry of a guilty plea.
Judge Schwab scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court released Tuti on a $25,000, unsecured bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Efraim Tuti.
District Man Sentenced to 19 Years in Prison for Sexually Assaulting Stepdaughter-Defendant Bound, Gagged and Assaulted Victim-Read the Press Release
WASHINGTON – A 39-year-old man from Washington, D.C. was sentenced today to 19 years in prison on a charge that stemmed from the physical attack and subsequent sexual abuse of his wife’s 14-year-old daughter, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, who is not named here to protect the privacy of the victim, pled guilty in April 2014 in the Superior Court of the District of Columbia to one count of first-degree sexual abuse. He was sentenced by the Honorable Rhonda Reid Winston. In addition to the prison term, the defendant will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant had been married to the victim’s mother for approximately two years and lived with the family in Southeast Washington. The victim referred to him as “Dad.” On March 14, 2014, while the victim’s mother and young siblings were out of the house, the defendant called her into a bedroom, where he bound, gagged and sexually assaulted her. When the defendant eventually let her go, the victim immediately texted her mother and begged her to come home. The child immediately disclosed the assault to her mother upon her arrival, and was taken to Children’s National Medical Center for treatment.
Judge Reid Winston referred to the defendant’s actions as “horrendous,” and found that he is a danger not only to his wife’s children, but also to other children in the community.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department. He also acknowledged the outstanding work of the Children=s Advocacy Center, and the Children’s National Medical Center, which provided critical services to the victim. He praised the efforts of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan. Finally, he acknowledged the efforts of Assistant U.S. Attorney Heide L. Herrmann, who prosecuted the matter.
14-127Defendant in “Operation Open Market” Sentenced for Committing New Financial Fraud Crimes While in Halfway HouseRead the Press Release
LAS VEGAS, Nev. – A defendant sentenced last week to over five years in prison in an online identity theft and credit card trafficking case, “Operation Open Market,” has been sentenced in a separate case to two more years in prison for committing identity theft and financial fraud crimes while he was in a Las Vegas halfway house, announced Daniel G. Bogden, United States Attorney for the District of Nevada, Acting Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Claude Arnold of Homeland Security Investigations (HSI) in Los Angeles.
“Some defendants never learn,” said U.S. Attorney Bogden. “Lofton thought he could get away with continuing his criminal operation in the halfway house, but thanks to sophisticated law enforcement efforts, he will now be serving two more years in prison.”
Michael Lofton, aka “Killit” and “Lofeazy”, 36, of Las Vegas, was sentenced on May 28, 2014, by U.S. District Judge James C. Mahan to 24 months in prison, to run consecutively to the 63 months sentence of imprisonment he received on May 22, 2014. Lofton pleaded guilty in January to one count of aggravated identity theft, and admitted that he conspired with others to unlawfully use and traffic in access devices, such as debit and credit cards. Specifically, on Dec. 30, 2012, Lofton fraudulently obtained an iPad, iPad docking station, iPad case, and Kindle Fire HD by using an unauthorized credit account number. Lofton committed the crime while he was residing in a halfway house in Las Vegas awaiting trial in the Operation Open Market case.
In Operation Open Market, Lofton pleaded guilty to participating in a racketeer influenced corrupt organization, Carder.su, which trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Fifty-six persons were charged in four separate indictments in Operation Open Market.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan, and Trial Attorney Jonathan Ophardt of the U.S. Department of Justice Organized Crime and Gang Section.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Davie Man Pleads Guilty in Large-Dollar Fraudulent Refund Scam Involving $22 Million in ClaimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Freddie Howard, 56, of Davie, pled guilty for his role in a large-dollar tax refund fraud scam. Sentencing for Howard is scheduled for August 29, 2014 at 10:15 a.m.
Howard pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. At sentencing, the defendant faces a maximum term of 22 years in prison.
According to the plea documents, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants, as well as, stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the plea documents, Freddie Howard submitted over $22 million in false and fraudulent large-dollar refund claims to the IRS that resulted in a payout of approximately $4.5 million on these large-dollar refund requests. As part of the scam, Howard caused a false and fraudulent tax return in the name of “J.E.” to be submitted to the IRS that resulted in a U.S. Treasury tax refund check sent to “J.E.” in Coral Springs for $398,502.52.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
DEA Employee and Contractor Husband Plead Guilty to<br /> False Statements in Kidnapping HoaxRead the Press Release
Nydia L. Perez and John A. Soto, both 44, of Haymarket, Virginia, pleaded guilty to one count of making false statements to law enforcement officials in federal court on Friday, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director for International Operations John Boles of the FBI.
According to the plea agreement, in December 2013, Perez, an employee of the Drug Enforcement Administration, and her husband Soto, a private contractor in the United States Embassy in Bogotá, Colombia, designed and executed a hoax with the intention of defrauding the United States Embassy in Bogotá. As part of the hoax, Perez and Soto fabricated a plot to kidnap minors who are United States citizens.
According to court filings, Perez and Soto sent, through electronic mail and courier services, information about a purported threat to the safety of minor United States citizens in Bogotá. Perez and Soto added detailed descriptions of the targeted United States citizens, including information about their whereabouts and daily routines. Perez and Soto included photographs of the citizens in order to enhance the seriousness of the threat, and attempted to implicate innocent individuals in the kidnapping plot. Perez and Soto made numerous false representations to law enforcement and security officials in furtherance of the fabricated kidnapping plot.
Sentencing before U.S. District Judge Amy Berman-Jackson is scheduled for Aug. 21, 2014.
The investigation was conducted by the FBI Legal Attaché in Bogotá and the Extra-Territorial Squad of the FBI Miami Field Office. Also participating in the investigation were the DEA, the U.S. Embassy Bogota Regional Security Office, and the U.S. Embassy Bogota Force Protection Detail. The Department is grateful for the assistance of the Colombia National Police Directorate of Anti-Kidnapping and Anti-Extortion.
The case is being prosecuted by Trial Attorney Justin Weitz of the Criminal Division’s Public Integrity Section.